TRADING EXAMPLES
CFD Trading Example 1: Buying EUR/USD
EUR/USD is trading at 1.1849/1.18508
You decide to buy €100,000 because you think the price of EUR/USD will go up. EUR/USD has a margin rate of 3.3%, which means you have to deposit 3.3% of the total position value as initial margin.
Therefore, in this example your initial margin will be €3,946.36 [3.33% × (100,000 × 1.18508)].
The platform will automatically convert the initial margin amount into your account currency at the prevailing GLOBEX conversion rate.
You decide to buy €100,000 because you think the price of EUR/USD will go up. EUR/USD has a margin rate of 3.3%, which means you have to deposit 3.3% of the total position value as initial margin.
Therefore, in this example your initial margin will be €3,946.36 [3.33% × (100,000 × 1.18508)].
The platform will automatically convert the initial margin amount into your account currency at the prevailing GLOBEX conversion rate.
OUTCOME 1: A WINNING TRADE
Your prediction was correct, and the price rises to 1.18824/1.18840.
You decide to close your long trade by selling at 1.18824 (the current sell price).
The price has moved 31.6 points (1.18824 – 1.18508) in your favour.
Your profit is €316.
You decide to close your long trade by selling at 1.18824 (the current sell price).
The price has moved 31.6 points (1.18824 – 1.18508) in your favour.
Your profit is €316.
OUTCOME 2: A LOSING TRADE
Unfortunately, your prediction was wrong and the price drops to 1.18391/1.18370.
You decide to close your long trade by selling at 1.18391 (the current sell price).
The price has moved –11.7 points (1.18391 – 1.18508) against you.
Your loss is –€117.
You decide to close your long trade by selling at 1.18391 (the current sell price).
The price has moved –11.7 points (1.18391 – 1.18508) against you.
Your loss is –€117.
CFD Trading Example 2: Selling EUR/GBP
EUR/GBP is trading at 0.86157/0.86184
You decide to sell €100,000 because you think the price of EUR/GBP will go down. EUR/GBP has a margin rate of 3.3%, which means you have to deposit 3.3% of the total position value as initial margin.
Therefore, in this example your initial margin will be €2,846.89 [3.33% × (100,000 × 0.86157)].
The platform will automatically convert the initial margin amount into your account currency at the prevailing GLOBEX conversion rate.
You decide to sell €100,000 because you think the price of EUR/GBP will go down. EUR/GBP has a margin rate of 3.3%, which means you have to deposit 3.3% of the total position value as initial margin.
Therefore, in this example your initial margin will be €2,846.89 [3.33% × (100,000 × 0.86157)].
The platform will automatically convert the initial margin amount into your account currency at the prevailing GLOBEX conversion rate.
OUTCOME 1: A WINNING TRADE
Your prediction was correct, and the price drops to 0.86030/0.86057.
You decide to close your short trade by selling at 0.86057 (the current buy price).
The price has moved 10 points (0.86157 – 0.86057) in your favour.
Your profit is £100.
You decide to close your short trade by selling at 0.86057 (the current buy price).
The price has moved 10 points (0.86157 – 0.86057) in your favour.
Your profit is £100.
OUTCOME 2: A LOSING TRADE
Unfortunately, your prediction was wrong and the price rises to 0.86230/0.86257.
You decide to close your short trade by selling at 0.86257 (the current buy price).
The price has moved 10 points (0.86157 – 0.86257) against you.
Your loss is –£100.
You decide to close your short trade by selling at 0.86257 (the current buy price).
The price has moved 10 points (0.86157 – 0.86257) against you.
Your loss is –£100.
CFD Trading Example 3: Buying AAPL
In this CFD example, AAPL is trading at a sell/buy price of 122.52/122.67.
Assume you want to buy 100 Shares (1 CFD = 100 shares) because you think the price will go up.
AAPL has a margin rate of 5%, which means you have to deposit 20% of the position’s value as initial margin.
In this example, your CFD initial margin will be $2,453.40 (20% × [100 units × 122.67 buy price]).
The platform will automatically convert the initial margin amount into your account currency at the prevailing GLOBEX conversion rate.
Assume you want to buy 100 Shares (1 CFD = 100 shares) because you think the price will go up.
AAPL has a margin rate of 5%, which means you have to deposit 20% of the position’s value as initial margin.
In this example, your CFD initial margin will be $2,453.40 (20% × [100 units × 122.67 buy price]).
The platform will automatically convert the initial margin amount into your account currency at the prevailing GLOBEX conversion rate.
OUTCOME 1: A WINNING TRADE
Your prediction was correct, and the price rises to 129.52/129.67.
You decide to close your long trade by selling at 129.52 (the current sell price).
The price has moved 6.85 points (129.52 – 122.67) in your favour. Multiply this by the size of your positions (100 shares) to calculate your gross profit, which is $685.
Commissions on CFD Trades – The Commission for each CFD can be viewed on the Trading Platform.
In this instance, the Commission Fee is $20 per lot.
Therefore, your total profit on AAPL is your gross profit minus total commissions.
$685 – $20 = $665 net profit
You decide to close your long trade by selling at 129.52 (the current sell price).
The price has moved 6.85 points (129.52 – 122.67) in your favour. Multiply this by the size of your positions (100 shares) to calculate your gross profit, which is $685.
Commissions on CFD Trades – The Commission for each CFD can be viewed on the Trading Platform.
In this instance, the Commission Fee is $20 per lot.
Therefore, your total profit on AAPL is your gross profit minus total commissions.
$685 – $20 = $665 net profit
OUTCOME 2: A LOSING TRADE
Unfortunately, your prediction was wrong and the price drops to 117.52/117.67.
You decide to close your long trade by selling at 117.52 (the current sell price).
The price has moved –5.15 points (122.67 – 117.52) against you. Multiply this by the size of your positions (100 shares) to calculate your loss, which is $520.
Commissions on CFD Trades – The Commission for each CFD can be viewed on the Trading Platform. In this instance, the Commission Fee is $20 per lot.
Therefore, your total loss on AAPL is your gross loss plus total commissions.
$520 + $20 = $540 net loss
You decide to close your long trade by selling at 117.52 (the current sell price).
The price has moved –5.15 points (122.67 – 117.52) against you. Multiply this by the size of your positions (100 shares) to calculate your loss, which is $520.
Commissions on CFD Trades – The Commission for each CFD can be viewed on the Trading Platform. In this instance, the Commission Fee is $20 per lot.
Therefore, your total loss on AAPL is your gross loss plus total commissions.
$520 + $20 = $540 net loss
CFD Trading Example 4: Selling AAPL
In this CFD example, AAPL is trading at a sell/buy price of 122.52/122.67.
Assume you want to sell 100 Shares (1 CFD = 100 shares) because you think the price will go down.
AAPL has a margin rate of 5%, which means you have to deposit 20% of the position’s value as initial margin.
In this example, your CFD initial margin will be $2,453.40 (20% × [100 units × 122.52 sell price]).
The platform will automatically convert the initial margin amount into your account currency at the prevailing GLOBEX conversion rate.
Assume you want to sell 100 Shares (1 CFD = 100 shares) because you think the price will go down.
AAPL has a margin rate of 5%, which means you have to deposit 20% of the position’s value as initial margin.
In this example, your CFD initial margin will be $2,453.40 (20% × [100 units × 122.52 sell price]).
The platform will automatically convert the initial margin amount into your account currency at the prevailing GLOBEX conversion rate.
OUTCOME 1: A WINNING TRADE
Your prediction was correct, and the price falls to 114.52/114.67.
You decide to close your short trade by buying back at 114.67 (the current buy price).
The price has moved 7.85 points (122.52 – 114.67) in your favour.
Multiply this by the size of your positions (100 shares) to calculate your gross profit, which is $785.
Commissions on CFD Trades – The Commission for each CFD can be viewed on the Trading Platform.
In this instance, the Commission Fee is $20 per lot.
Therefore, your total profit on AAPL is your gross profit minus total commissions.
$785 – $20 = $765 net profit
You decide to close your short trade by buying back at 114.67 (the current buy price).
The price has moved 7.85 points (122.52 – 114.67) in your favour.
Multiply this by the size of your positions (100 shares) to calculate your gross profit, which is $785.
Commissions on CFD Trades – The Commission for each CFD can be viewed on the Trading Platform.
In this instance, the Commission Fee is $20 per lot.
Therefore, your total profit on AAPL is your gross profit minus total commissions.
$785 – $20 = $765 net profit
OUTCOME 2: A LOSING TRADE
Unfortunately, your prediction was wrong and the price rises to 130.52/130.67.
You decide to close your short trade by selling at 130.67 (the current buy price).
The price has moved 8.15 points (130.67 – 122.52) against you. Multiply this by the size of your positions (100 shares) to calculate your loss, which is $815.
Commissions on CFD Trades – The Commission for each CFD can be viewed on the Trading Platform. In this instance, the Commission Fee is $20 per lot.
Therefore, your total loss on AAPL is your gross loss plus total commissions.
$815 + $20 = $835 net loss
You decide to close your short trade by selling at 130.67 (the current buy price).
The price has moved 8.15 points (130.67 – 122.52) against you. Multiply this by the size of your positions (100 shares) to calculate your loss, which is $815.
Commissions on CFD Trades – The Commission for each CFD can be viewed on the Trading Platform. In this instance, the Commission Fee is $20 per lot.
Therefore, your total loss on AAPL is your gross loss plus total commissions.
$815 + $20 = $835 net loss
Swap notes:
Example only, not advice. Commission Fee for each CFD contract can be viewed on the Trading Platform. Initial margin will be deducted or credited at the prevailing GLOBEX rate. For more details see margin rates, fees, and contract specifications. Your actual results may differ based on market conditions and trading application.
Example only, not advice. Commission Fee for each CFD contract can be viewed on the Trading Platform. Initial margin will be deducted or credited at the prevailing GLOBEX rate. For more details see margin rates, fees, and contract specifications. Your actual results may differ based on market conditions and trading application.
